North Salem NY Real Estate | Mortgage applications down 12%, rates edge up

The number of mortgage applications filed by potential homebuyers and refinancing borrowers fell 12% for the week ending October 19, an industry trade group said.

The steep drop is attributed to an upward adjustment made a week earlier to account for the Columbus Day holiday, according to the Mortgage Bankers Association. When reviewing the numbers on an unadjusted basis, applications fell 2%.

The MBA noted that refinancing activity declined 13% from the previous week while home purchase applications fell 8%. The trend of slowdowns is expected to continue.

The MBA is warning it expects to see $1.3 trillion in mortgage originations during 2013. This is down more than 25% from its revised estimation of $1.7 trillion in 2012.

As applications declined, rates went up with the average 30-year, fixed-rate mortgage on a conforming loan increasing to 3.63% from 3.57%.

The 30-year jumbo FRM also grew to 3.85% from 3.81% last week.

The 30-year, FRM backed by FHA edged up to 3.41% from 3.34%, while the average 15-year, FRM hit 2.96% from 2.87% last week.

The 5/1 ARM also grew to 2.72% from 2.59%.


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